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Late Fee Calculator

Calculates late payment penalties and accrued interest on overdue invoices at specified rates

The original invoice amount

Number of days past the payment due date

Annual interest rate applied to overdue invoices

Optional one-time flat fee for late payment

Interest Charge

Interest accrued based on days overdue

Flat Fee

One-time flat late fee amount

Total Late Fee

Combined interest and flat fee charges

Total Amount Owed

Original invoice amount plus all late fees

Frequently Asked Questions

How do I calculate late fees on an invoice?

Late fees typically combine a flat fee and/or interest. Interest is calculated as: Invoice Amount x Annual Rate x (Days Overdue / 365). For example, $5,000 at 18% annual interest for 30 days = $5,000 x 0.18 x (30/365) = $73.97.

What is a typical late fee for invoices?

Common approaches include 1-2% monthly interest (12-24% annually), a flat fee of $25-50, or a combination of both. Check your state or country's usury laws, as maximum allowable rates vary by jurisdiction.

Are late fees legally enforceable?

Generally yes, if they are disclosed in the original contract or invoice terms before work begins. The fee must be reasonable and comply with local usury laws. Having clear payment terms in writing protects your right to collect.